Bryan Corporation,an S Corporation Since Its Organization,is Owned Entirely by Mr.Bryan.The

question 1

Multiple Choice

Bryan Corporation,an S corporation since its organization,is owned entirely by Mr.Bryan.The corporation uses a calendar year as its taxable year.Mr.Bryan paid $120,000 for his Bryan stock when the corporation was formed on January 1 of this year.For this year,Bryan Corporation reported the following results: Distributions of $40,000 were made during the year.What is the basis of Mr.Bryan's stock on December 31?

• A)$163,000
• B)$165,000
• C)$203,000
• D)$205,000

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Definitions:

Consumers

Individuals or organizations that use economic goods and services for their own personal benefit or to meet their needs.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a negative financial performance.

X-Inefficiency

The difference between efficient behavior of businesses theoretically assumed or envisaged and their observed behavior in reality due to a lack of competitive pressure.